The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-09-23
ANOTHER NAPOLEON OF FINANCE.
E. s. Wheeler. the Bankrupt Iron Importer,
Arrested on Criminal Charge.

NEW HAVEN, Conn. Sept. Pc. 8. Wheeler,
the insovent iron importer, whose recent failure.
with liabilities of s. 000 900 and actual assets of
less than $780, O00 caused such a sensation in this
city, was arrested this afternoon, charged with
obtaining money under false pretenses The
arrest was caused by the Phoenix Bank OF Hart
ford, which discounted a note of 81, 9l4 for
Wheeler two days before his failure. The note
was drawn by the Janss Wyck Company, Of
Baltimore. in favor o; Wheeler. and in.
dorssd by him. The Baltimore company
was one of Wheeler's alleged branch
houses, and the draft was sup
posed to be In payment for goods sold, but the
Hartford people allege that the Baltimore COM
pany had no corporate existence. the company
being merely convenient decoy through which
Wheeler could float his paper. Wheeler was
taken to Hartford, where be was arraigned and
the case continued, Wheeler being held in a5. 900
bonds. which were furnished. The failure,
porary suspension has proved to be one of the
worst that has happened in this section for years.
and the impression Is spreading that the cred
itors will realize but little on their paper, All
sorts of ugly stories are afoat concerning
Wheelers manner Of raising funds. and much
wonder Is expressed as to whore the money has
gone One of the most peculiar features of the
failure has been the extraordinary secrecy
main tanned. both by Wheeler and the local banks,
which are such heavy losers. The rumors fly
ing are to the effect that Wheeler's alleged
branch houses were merely fgureheads, through
which to raise money, tho allegations being that
the branches or bogus firms would give Wheeler
notes. ostensibly for goods purchased. and that
Wheeler would indorse the notes, take them to
the banks, where, being looked upon genuine
business papsr and Whesler's financial standing
being rated high, they were readily discounted.
This modus operandi. 1t is claimed. was carried
on through a number of alleged firms, and
through as many banks as would accept the
paper. The local banks hold over half a million
of Wheelers paper, and it is thought to be
nearly a total loss. Gen. S. E. Emerin.
who recently appointed trustee of
the Wheeler Company, has been investigat-
ing affairs in the West and is
reported to have written home that the Illinois
Baroedwire Fence Company, of Joliet, ILL.,.
which recently failed has legal existence,
and that the paper of that concern will be total
loss The Illinois Company is supposed to have
exchanged large blocks of paper with Wheeler.
Wheeler's social standing was very high, and he
was prominent in church and Sunday school cir
ces. A number of additional warrants, it is ex-
pected, will be issued against him at once.
New York dispatch says: An attachment
was granted to-day against the property of E. s.
Wheeler e CO., of New Haven. Conn, in favor
of Heide bach, Iekelheimer & Co. who aegs
that they gave Wheeler & Co. credit their
London firm of c. j. Hambro d Co. for fl0, 900.
The credit was to be secured by tin-plates and
steel rods purchased by Wheeler & Co Thirty
six thousand dollars drawn the account
by the New Haven firm. The attachment was
to secure possession of these goods which were
in this city, and for $40, 600 damages.